GM’s Henderson: ‘Significant Challenges,’ ‘Tight Timeline’

By WSJ Staff

Here is the text of a statement released by GM in the wake of the White House’s release of its auto-industry restructuring plan.GM Statement on Auto Industry Restructuring

Today’s announcement by President Obama begins a new era for the U.S. auto industry. It also marks a defining moment in the history of General Motors.

The U.S. Treasury will provide working capital financing for GM for 60 days while GM completes a more accelerated and aggressive restructuring to put the company on sound long-term financial footing. We understand the historic opportunity this presents, and we are fully committed to successfully completing the reinvention of GM.

As President Obama said today, the success of this reinvention is vital for GM, for the U.S. and global economies, and for the millions of employees, suppliers, dealers, retirees and others who depend on the company.

During the next 60 days, GM will address the tough issues to improve the long-term viability of the company, including the restructuring of the financial obligations to the bond holders, unions and other stakeholders. Our strong preference is to complete this restructuring out of court. However, GM will take whatever steps are necessary to successfully restructure the company, which could include a court-supervised process.

The men and women of GM, including our dealers, suppliers and other key partners, know what we must do to accomplish this task. We are fully committed to making this successful. We owe that to the GM community, to our customers, and to the U.S. taxpayers, who are providing support during this exceptionally challenging time.

Quotes attributable to Fritz Henderson, GM CEO

“The U.S. Treasury has said that it strongly believes that a substantial restructuring will lead to a viable GM. Over the next 60 days, we will work around the clock, with all parties, to meet the aggressive requirements that have been set by the Task Force, and to make the fundamental and lasting changes necessary to reinvent GM for the long-term.”

“We have significant challenges ahead of us, and a very tight timeline. I am confident that the GM team will succeed, and that a stronger, healthier GM will play an important role in revitalizing America’s economy and re-establishing its technology leadership and energy independence.”

“The administration has made it clear that it expects GM to expand and accelerate its restructuring efforts. I want the American people to know that we understand and accept this guidance. The road is tough, but the ultimate goal – a leaner, stronger, viable GM – is one we share.”Source: GM

Comments (2 of 2)

THE US AUTOMAKERS SHOULD TAKE A PAGE OUT OF THE JAPANISE CAR COMPANIES AND ASK THE GOV. FOR A SUBSIDY AND UNDERCUT THE FOREIGN MAKERS. THIS IS THE WAY THEY SCREWED UP OUR INDUSTRY.LETS BE CREATIVE.

1:52 pm March 30, 2009

Bob wrote :

Mr. Wagoner, my hats off to you.
You are a decent man in an indecent world.
However, your time had come to an end.
I give you great credit for what you have done the last 10 years to turn around GM,
but you needed to act over the last 4 months,
to implement a factory wage scale set at 90% of what the foreign transplants in the south pay (to help GM under price Toyota, and help re-build market share),
and to tear up the UAW - Detroit work rules,
and replace them with the NUMMI work rules.
Maybe these 2 things can now happen, maybe only going bk can only force them to happen (from which the company may not recover), only time will tell.

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